X Ltd operates a standard marginal costing system. The following budgeted and standard cost information is available: Budgeted production and sales 10,000 units £ per unit Selling price Direct material cost – 3 kg × £10 Direct labour cost – 5 hours X £8 Variable production overheads - 5 hours x £4 250 30 40 20 Actual results for the period were as follows: Production and sales 11,500 units Sales value 2,817,500 342,000 468,000 195,000 Direct material – 36,000 kg Direct labour - 52,000 hours Variable production overheads For all calculated variances, tick the correct box to indicate whether the variance is adverse or favourable. Question 29 The direct material price variance is adverse favourable

X Ltd operates a standard marginal costing system. The following budgeted and standard cost information is available: Budgeted production and sales 10,000 units £ per unit Selling price Direct material cost – 3 kg × £10 Direct labour cost – 5 hours X £8 Variable production overheads - 5 hours x £4 250 30 40 20 Actual results for the period were as follows: Production and sales 11,500 units Sales value 2,817,500 342,000 468,000 195,000 Direct material – 36,000 kg Direct labour - 52,000 hours Variable production overheads For all calculated variances, tick the correct box to indicate whether the variance is adverse or favourable. Question 29 The direct material price variance is adverse favourable

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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